# Insurance for car repair garages and vehicle workshops in Germany

> Every day your garage holds cars worth several hundred thousand euros that do not belong to you. A test drive on red trade plates, a fire in the workshop, a forgotten wheel nut: ordinary public liability insurance does not cover exactly these cases. This page explains what a garage really needs and what it costs.

Quelle/Source: https://www.nammert.com/en/business-insurance-car-repair-garage.php  
Updated: 2026-09-18

## Are my customers' cars insured while they are in my workshop?

Not under ordinary public liability, because things in your care are excluded there. For this there is motor trade insurance with garage risk cover (Kfz-Handel- und Handwerksversicherung): it covers customers' vehicles against fire, theft, storm and damage on your premises and during test drives. Without this policy, in the worst case nobody pays for the customers' cars after a workshop fire.

## At a glance

- **Compulsory:** Motor liability for your own vehicles and for red trade plates (rote Kennzeichen) is required by law; public liability is not compulsory, but essential
- **Biggest risk:** Damage to customers' vehicles in your care and accidents caused by faulty repairs
- **Basic cover from:** about €410 a year for public liability with €100,000 turnover and an excess
- **Statutory accident insurer:** BG Holz und Metall (BGHM), the Berufsgenossenschaft for wood and metal; membership is compulsory from your first employee
- **Often forgotten:** Customers' vehicles in the workshop: a fire or burglary hits other people's cars, which are not covered by public liability
- **WZ 2025 / NACE:** 95.31 Reparatur und Instandhaltung von Kraftwagen, 95.32 Reparatur und Instandhaltung von Krafträdern

## What goes wrong in this trade

- **Customers' vehicles in your care:** A fire, a break-in or a hailstorm in the yard hits cars that do not belong to you. Several vehicles at once quickly add up to six figures.
- **Test drives:** An accident happens on a test drive with red trade plates. Without the right insurance, you pay for the damage to the customer's car yourself.
- **Faulty repairs:** Wheel nuts not tightened, brakes fitted wrongly, oil forgotten: follow-on accidents and engine damage come after collection.
- **Lifts and machines:** Vehicle lifts, diagnostic equipment and wheel alignment systems are expensive and essential for the business.
- **Waste oil and fuels:** Leaking tanks, waste oil and battery acid contaminate soil and sewers; the authority orders the cleanup.
- **Diagnostic data:** Workshop software, customer data and online access to manufacturer portals are a target for attackers.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 5, Fire and water 4, Theft 4, Cyber 3, Downtime 3, Health 3

## The insurance you need

- **Business liability** (Essential): Pays for injury and property damage inside and outside the workshop, with motor trade supplementary liability for consequential damage from faulty repairs and environmental risks. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Fleet insurance** (Essential): Motor trade insurance covers red trade plates, test drives, your own vehicles and customers' vehicles under the garage risk. https://www.nammert.com/en/insurance-broker-fleet-insurance.php
- **Business contents** (Strongly advised): Replaces tools, spare parts stock and fittings after fire, burglary and escape of water. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Machinery breakdown** (Strongly advised): Covers vehicle lifts, tyre machines and air conditioning service units against breakage and operating errors. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Electronic equipment** (Strongly advised): Diagnostic devices, calibration equipment for driver assistance systems and IT fail after surges or drops. https://www.nammert.com/en/insurance-broker-electronic-equipment.php
- **Business interruption** (Depends on the business): Pays fixed costs and wages if the workshop stays closed after a fire. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Cyber insurance** (Depends on the business): Helps when workshop software, appointment book and customer data are encrypted. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business legal expenses** (Depends on the business): Business legal expenses cover for disputes over repair invoices, warranty and damage assessments. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php

## What it costs: example prices

A car repair garage needs two core policies: public liability and motor trade insurance. The premium for the second depends on the number of trade plates, vehicles in stock and the value of customers' vehicles in your care at the same time.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | €100,000 turnover, €3 million cover, €1,000 excess | about €410 to €900 a year |
| Fleet insurance | Motor trade insurance, small garage with one red trade plate, entry tariff | about €190 to €600 a year |
| Fleet insurance | Garage with garage risk cover for up to ten customers' vehicles and comprehensive cover | about €1,200 to €3,500 a year |
| Business contents | Tools, parts stock and fittings worth €100,000 | about €350 to €900 a year |
| Machinery breakdown | Vehicle lifts, tyre and alignment equipment worth €80,000 | about €400 to €1,000 a year |

For comparison: Liability and motor trade insurance for a small garage cost roughly as much per year as four to five services on a compact car.

_Guide prices excluding German insurance premium tax, as of September 2026. The entry prices for liability and motor trade insurance come from published tariff information (from €34.10 and from €16.09 a month); the other ranges are guide values from our quoting practice. We obtain the exact quote for you._

- [finanzchecks.de: Betriebshaftpflicht Kfz-Werkstatt](https://www.finanzchecks.de/betriebshaftpflichtversicherung/kfz-werkstatt-reparatur)
- [finanzchecks.de: Kfz-Handel- und Handwerkversicherung](https://www.finanzchecks.de/gewerbe-versicherung/kfz-handel-und-handwerkversicherung)
- [Finanzchef24: Versicherungen für Kfz-Betriebe](https://www.finanzchef24.de/versicherung/kfz-betrieb)

## Our suggestions: three packages

- **Start** (small independent garage, one red trade plate): Business liability, Fleet insurance. Together: about €700 to €1,500 a year
- **Garage** (three to eight mechanics, vehicle lifts, customers' cars in the yard): Business liability, Fleet insurance, Business contents, Machinery breakdown, Electronic equipment. Together: about €2,500 to €6,000 a year
- **All round** (master workshop with bodywork, paint and used car sales): Business liability, Fleet insurance, Business contents, Machinery breakdown, Electronic equipment, Business interruption, Cyber insurance. Together: about €5,500 to €13,000 a year

## The worst day in the garage

Six claims as car repair garages really experience them, all on a single Friday. Go through the day and see who pays.

- 07:20: Overnight, two customers' cars in the yard were broken into and their navigation units removed. (€6,800, Paid by: Fleet insurance)
- 09:10: A customer reports that a wheel came off on the motorway after a tyre change. Accident involving two vehicles. (€24,000, Paid by: Business liability)
- 11:30: On a test drive with red trade plates, a mechanic runs into the car in front. Both cars are damaged. (€9,500, Paid by: Fleet insurance)
- 13:45: The vehicle lift lowers because of a hydraulic fault. The lift is broken and the car on it damaged. (€14,000, Paid by: Machinery breakdown)
- 15:30: The diagnostic device for driver assistance systems fails after a power surge. (€7,200, Paid by: Electronic equipment)
- 21:15: A short circuit in an electric car in the workshop starts a fire. Three customers' vehicles and the workshop fittings are destroyed. (€160,000, Paid by: Fleet insurance)

**Damage so far:** €221,500

## Practical tips from your broker

- Take out motor trade insurance with garage risk cover; only that covers customers' vehicles in your care.
- Look for motor trade supplementary liability: it pays for consequential damage from faulty repairs, which public liability often excludes.
- Set the maximum sum for customers' vehicles so that a full yard of expensive cars is covered.
- Name work on electric and hybrid vehicles expressly; the fire risk and values are higher.
- Environmental liability and environmental damage insurance belong in the package if you store waste oil, fuels and batteries.
- Check whether test drives by customers and pick-up and delivery services are covered.

## Why NAMMERT for your business

- **We know the garage gap:** Between public liability and motor insurance, it is often precisely the customers' cars that are missing. We compare several insurers and close this gap.
- **Vehicle damage is our daily work:** As an underwriting agent we settle claims on boats, engines and trailers ourselves. We speak the language of surveyors and workshops.
- **One contact person:** Workshop, red trade plates, your own vehicles and your private provision are handled together.
- **Free for you since 1989:** The insurer pays our remuneration. You work with a family business that will still be there for you.

## FAQ

### What insurance does a car repair garage need?

At least public liability and motor trade insurance. Add contents, machinery and electronics insurance for lifts and diagnostic equipment.

### What is motor trade insurance?

In German it is called Kfz-Handel- und Handwerksversicherung: a combined policy for garages and dealers. It covers red trade plates, test and transfer drives, your own vehicles and, under the garage risk, your customers' vehicles.

### How much does insurance cost for a garage?

Published figures show public liability from around €410 a year and motor trade insurance from around €190. With garage risk cover for several customers' vehicles, it is usually €1,200 to €3,500 in our experience.

### Who pays if a wheel comes off after my repair?

Public liability with motor trade supplementary liability pays for the consequential damage to other vehicles and people. Redoing your own work remains a warranty matter.

### Do I need separate insurance for red trade plates?

Yes, red trade plates are only issued with proof of motor liability cover. It is usually part of motor trade insurance.

### Are electric cars a particular risk in the workshop?

Yes, because of the fire risk from damaged batteries and the high vehicle values. Name work on high-voltage systems and agree the parking rules with the insurer.

## Request quotes

We obtain quotes and come back with a comparison. Free of charge and without obligation: the insurer pays our commission. You can write in English. https://www.nammert.com/en/business-insurance-car-repair-garage.php#anfrage

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NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker.

NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.